Alder Biopharmaceuticals Inc. said it’s signed a deal with Bristol-Myers Squibb Co. to commercialize the Bothell biotech’s rheumatoid arthritis drug.
As part of the deal, Alder will receive $85 million upfront from Bristol-Myers Squibb (NYSE: BMY) that will give the Princeton, N.J.-based biopharmaceutical giant worldwide rights to develop and commercialize Alder’s ALD518 rheumatoid arthritis antibody, which Alder says “represents a promising new anti-inflammatory mechanism that could result in bone and joint preservation,” and Alder is also studying the drug “for the treatment of cancer and in cancer supportive care.”
In addition to the upfront cash payment, Bristol-Myers Squibb could pay milestone payments of up to $764 million and other milestone payments worth in excess of another $200 million. Bristol-Myers Squibb may also make an equity investment of up to $20 million during Alder’s initial public offering.
“Bristol-Myers Squibb and Alder share the vision that ALD518 could become an important part of treating patients with rheumatoid arthritis,” said Randall Schatzman, president and CEO of Alder Biopharmaceuticals, in a statement.